Despite high volatility and record price levels achieved during 2022, the indicative FOB offer prices of Ukrainian wheat are 33-58 USD/t or 10-19% lower than the year ago, head of local markets department Anna Tanskaya said.
"Ukrainian grain currently is one of the cheapest in the world due to the restrained demand amid both a seasonal trade decrease as well as high risks and a reduction in ship calls to the ports of Great Odesa. Russia’s inspectors at the JCC continue to slow down the work of the “grain corridor” by deliberate reducing the number of inspections of vessels in the Bosphorus (to 3-6 per day instead of the required 12+) and extending time of inspections. Power outages due to permanent attacks by Russia increasingly complicate the operation of ports and land logistics, lead to interruptions and forced stops”, – she said.
A. Tanskaya added that further easing of freight rates and stronger sea export in December by the “grain corridor” against all odds added support to the prices.
By the end of December, the offer prices of 12.5%, 11.5% and feed wheat for delivery in January totaled 290-305, 280-300 and 250-265 USD/t FOB. The year ago, the prices were at 329-338, 327-336, 308-318 USD/t FOB.
“Higher share of feed wheat in harvest 2022 in Ukraine and sharp decline of export to the traditional remote buyers resulted in more sizable decrease of prices of feed grain”, – A. Tanskaya added.
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